tv First Business KICU October 31, 2013 4:00am-4:31am PDT
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are traders feeling fearless this halloween as the stock market dodges an october in the red. in today's cover story.... health care officials hatch a plan to fix healthcare dot gov. plus... why retailers are getting ready for a scary set of numbers .... and the return of crowd pleasers at the box office.. first business starts now! good morning! it's thursday, october 31st. i'm angela miles. in today's first look: it's halloween but the stock market-- is not so scary. stocks and commodites sold off yesterday. yet-- the dow and s&p remain near record territory. october - tends to be one of the more fear-filled months of
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the year. a shocking u.s. budget deficit drop. the deficit fell to the lowest level in 5 years on record revenues and a slow down in government spending. facebook makes investors smile shares initially shot up more than a dollar after the close. the social media company's revenues rose to $2 billion topping ananalyst expecations. the company reports having 1.19 billion montnly active users. the stock later drifted lower on concerns about a decline among teen users trader andrew keene--president of keene on the market.com joins us this morning for closer look at the market's. andrew will we see any post fed reaction in the market yet today? > i think we saw a post reaction yesterday . if you looked at you know we were very strong in the morning. we keep climbing a little bit higher and higher on a day-to-day basis. then when the news came out, i
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think the thing that scare people was a possible taper in december was told. so then, we sold off the futures about 15 points . we did rally back from there and will close like right in the middle. so i think that the market continues to get higher into to december. if you look at the volatility indexed being the cbo evects we did not even get a pop in that, so that did not move all. which means there's not much fear out there because markets had it higher at the end of the month coming up. and usually, first of the month there are usually new buyers coming into the market. faced book reported earnings after the close, did you have any feelings about that trade? > yes, it was interesting we saw yelped and linked in both sell-off and they did move as much as anticipated. so i thought face book would not move as much as anticipated. faced book came out with strong earnings on the top and bottom line. it got up to $57, then it sold off. keep an eye on one this $55 level. this was the recent all-time high were resistance becomes support, support becomes resistant. so
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if it breaks out under $55 it could task back-down to 5253. if it can hold this 5480 level it back up higher. andrew, have a great day! > thank you, you too! the federal reserve remains in focus on wall street. yesterday, the fed stayed pat on low interest rates-- and signaled it will keep up with its $85 billion dollar bond buying program. the fed also noted weakness in the economy. some money managers and traders see reason to believe the fed won't taper its economic stimulus until next year. the fed announcement caused a sell off in the stock market and treasury yields to head higher. health and human services secretary kathleen selbelius-- who's department has drawn the most criticism for healthcare- dot-gov's numerous problems apologized and said they're fixing it. our cover story looks at how much fixing is needed and how when it'll be done. u.s. health and human services secretary, kathleen sebelius (seh-bee-lee-us) took responsibility for the botched
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launch of healthcare-dot-gov, the website where americans hoping to shop for health insurance, have found it crashed, instead.. sebelius then threw verizon under the bus. sebelius also blamed government subcontractors, though at least one of them, c-g-i federal, warned there hadn't been adaquate time to test the website. it's led the ceo of e- health to write a letter to president obama, offering to fix it for free. some say the website's registration process, changed at the last minute couldn't handle the volume of applicants when the website launched october 1st. tech experts have been brought in, but it hasn't satsified healthcare reform's critics. for the record, we logged onto healthcare-dot-gov. and within a minute and a half, two health insurance brokers called to
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assist...apparently alerted once we had entered our phone number. the better business bureau is out with a warning about "fake" affordable care act websites. it may be tricky to tell the difference but the phony sites are out for personal information-- such as social security and bank acount numbers. the bbb warns do not give out any information unless you are certain you are on the official site: healthcare.gov. to avoid trouble: the bbb says don't google for the site go directly to www. healthcare.gov. ignore unsolicited phone calls or emails banks are becoming weary of outsourcing. regulators warned this week that banks are taking on too
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much risk by outsourcing vendors. concerns have been on the rise since 20-12, when captial one was fined after its external call center misled consumers about finacial products. goldman sachs is discouraging its analysts from working weekends.-- according to bloomberg news. it's an effort to lighten the load on entry- level employees. 100-hour work-weeks are the norm for new college grads looking to make a mark in the world of invesment banking. but often those overworked underlings leave within a year or two for greener, less demanding pastures. goldman reportedly wants to retain its top talent. at barclays... the bank says regulation is forcing the bank to cut back. barclays said its trying to cut its balance sheet and scale back its trading business due to lower revenues. third quarter earnings dropped at barclays, and it revealed its being investigated for the possible manipulation of foreign exchange rates. it notes its conducting an
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internal review. turning now to earnings from the automakers chrysler reported a profit of 22%. the gain was made mostly on demand for its pickups and suvs. chrysler is said to be on track for its upcoming ipo. pickups were profitable for gm as well. general motors reported a 6% drop in profits.. but still managed to beat wall street's prediciton. car companies overall are getting a lift from historicallly low interest rates. tesla motors gets closer to its cross-country road-trip goals. the electronic car maker says it has completed a big chunk of its plans to install free electric car charging stations country-wide.-- making it possible to drive the company's model s sedan along the entire west coast. apple is replacing what it is calling a "very limited" number of iphone 5s because of a manufacturing defect. the defect could cause the phone's battery to take longer to charge or shorten battery life. apple says the issue does not affect battery safety.
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investors have high hopes for twitter. the social network is getting ready for its ipo roadshow through six u.s. cities, ending in new york next week. reuters reports institutional investors met with twitter officials this week who say they are optimistic and do not expect facebook- type ipo drama . outrage against an upscale retailer continues. protestors gathered yesterday outside of a manhattan barneys store. barneys new york has been under fire following accusations of racial profiling. two afican american shoppers say they were detained while shopping at barneys and later released. the new york attorney general's office is investigating. barneys claims it does not tolerate racial discrimination. lululemon is praising a new addition to the company. the yoga apparel company hired a former kmart executive to run its global merchandising and design sector. however, it has not announced a new ceo yet. the head of the company stepped down back in april after a massive recall related to see through yoga pants. the stock is still recovering... trading near 70 dollars.
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tech company infosys will pay $34 million dollars for alleged visa fraud. federal prosecutors accused the indian outsourcing i-t company of circumventing immigration laws to bring thousands of low paid workers to america. infosys has been under investigation for visa abuse since 2011. the company will face no criminal charges or admit doing anything wrong. it's official -- social security benefits for nearly 58 million people will increase 1.5% next year. the cost of living increase came about two weeks late due to the government shutdown. the increase is a small one because consumer prices have not gone up very much this past year. the social security cola adjustments are tied to that number. just in time for christmas barnes and noble introduces a new 'nook' e-reader. but will it be enough to help the beleagured book seller? lighter and brighter with an extended 8-week battery life, the new reader is a hit with critics -- but questions about whether there is a market for e-readers and whether barnes and noble will even be around in the future are weighing on the device's debut. a new roundup of the world's most powerful figures ranks
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russia's president in the top spot. vladimir putin booted president obama out of the number one spot on forbes' power list. president obama slid to number two. general secretary of china xi jinping, pope francis and german chancellor angela merkel all rounded out the top five. tech ceos also made strides this year.... apple's tim cook and jeff bezos also moved up on the power list. still to come-- our film critic will fast forward to november as the box office dishes up some fan favorites. plus... why retailers are fearing the aftermath of
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halloween... but first.... find out where you can get your hands on some free treats today... we'll be right back. for cleaner air and your right to breathe it. for those who want to quit smoking and for those who need them to. we're fighting for clear skies over every city and healthy lungs throughout the country. the american lung association isn't just fighting for air. we're fighting for all the things that make it worth breathing. join us in the fight at fightingforair.org. from coast to coast, cops are ccking down... on seat belt violations. buckle up, day and night, or expect a ticket.
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restaurants. now a growing number, including olive garden, i-hop and red lobster, are attempting to lure families in by offering free children's entrees with the purchse of adult entrees. while tough on casual dining establishments, halloween is one of the busiest nights of the year for pizza delivery. retailers are bracing for a scare spending on halloween candy, costumes and parties this year-- could take a wicked turn. jackie keenan reports from florida. shoppers are spooked this halloween. sales are trending lower for many stores, including this one in clearwater, florida. co-owner denise bernard says sales are frightingly slow. according to estimates from the national retail federation, sales on everything from pet costumes to zombie masks are expected to be down nearly 14 percent this year. consumers are expected to spend $75 per person, down from nearly 80 dollars last year. the scary antics from capitol
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hill this month, and a slow job market, are keeping consumers conservative. but retailers shouldn't freak out just yet halloween is big business. while sales will be down this year, overall, halloween is one of the biggest selling holidays. sales are up more than 55 percent since 2005. for spirit halloween stores, sales are even with last year, but competition is getting fierce. noelle rockets plans to spend a few thousand dollars on a halloween bash for her family and friends, and she isn't alone. dr. paul duryea is using the popularity of the holiday to raise money for a good cause. he too will spend thousands on things like fog machines and
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creepy clowns to raise money for his local hospice center. he says his fundraiser has gotten bigger and bigger every year because of the growing popularity of halloween, as everyone loves a big scare. for first business news, i'm jackie keenan. when it comes to gobbling up treats this halloween-- americans will do 72% of their spending on chocolate. the so-called halloween indicator defies history this year. with the market reaching all- time highs in september this year, it means the adage "sell in may and walk away"
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doesn't hold true. researchers aren't certain why the sell-offs are more accute over the summer months but one theory is the summer vacations of traders and investors. this year halloween comes with market near record highs still to come.... great expectations. why november could be a blockbuster month for the box office. and later in chart talk....is a high flying stock getting ready surpass the 1000 dollar mark ? stay with us. i wanted to be in the military since i was a kid.
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i served in the united states air force. i served a total of 16 years. i was deployed 13 times. on my second deployment four bombs hit my vehicle. and at 19 years old, that was the first time i ever saw somebody die. coming back, i was raging. i started having pretty horrible nightmares. i would wake up in middle of the night sweats. i started drinking a lot.
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i felt worthless. i guess i never recognized it in myself. eventually, one day i just walked into the va hospital and said i'd like to see somebody. don't suffer alone. you've got to find that link with somebody that will make you let it go. it all starts with going to the va. there's a whole community of veterans that just want to help you out. it's for the guys who couldn't come back, you owe it to them to live well. because they're not here with their families.
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movie goers will be able to feast on another round of the hunger games along with 2 large helpings from disney at the box office in november. our movie guy is here with his predictions for next month-- great to have the back as always, but i want to to talk about last weekend because the nail it! onebad grandpa made it to number 1.
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> no. 1 with a bullet. never under estimate jackass films. you love them? > they cost little and that make a lot of money. and a bit on plot in this one was you say? > yes, it has a plot and that's actually one of the problems with the movie. it's too much interaction with bad grandpa and the boy. well also at the box office over the weekend was gravity. i want to start with last vegas, i seen the film: depressor. > yes it kind of was at depressor. it was aimed at adults which his fight in all but it would be nice if they would've gave them something smarter. it's especially with a group of actors. is so terrific but the movie ended up being kind of depressing, that they have been giving basically nothing to do. kevin klien delivered a few laughs in the movie. morgan freeman has a
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good drunk scene, but that is about it. what about the hunger's? > the hunger's game is really bad. the hunger's game is a really poorly made science fiction, a really stiff science fiction film that that sort of it doesn't want to be fun, try to be sort of self important, and it sits in the middle and doesn't steer the needle either which way. it's really bad! > now you have peruzed the list of movies coming out for november in here are your top predictions. it's still made your list? > it still may my list cause i think hunger's games might really probably may grab the no. 1 spot this weekend it has been a very weak weekend. people are under estimating free birds. i mean animated films have done very well the first weekend of november. and if it doesn't do well this weekend on going to blame it on the marketing. i think free birds has four weeks before frozen comes out so has the family audience all to itself. so i think the hunger games are going to drop back a bit. it still the hunger games
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are going to make some money @ not as much as some are hoping for. now the hunger games though; do you think it will live up to expectations? >that's a good question. it's a new director francis lawrence the director and not very fond of my self. he did i am legend and constantine. so we will see is taken over the franchise and we will see. the fans are gong to show up regardless so we will see. that's an easy call. the first when did over 400 million in the u.s.. this one we will see if it will get that sort of bump and do a little bit better. it will easily be one of the top two films of the year and then you have thor of the dark world after that which is gonna get the same avengers bump that iron man three got this summer. the first one did hundred a hundred 81 million in the u.s., i think this one may do moreat like 23240. i think it's quick to do very well and then frozen that's disney's thanksgiving offering animated film. tangled a few years ago did 200 million and last year rise of the guardians not a disney film, didn't do so well. this one looks may be a little more rise of the guardians but its aimed towards kids and young girls so i think it's gonna do well. thank-you erik, have a good
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and cabonot joins us now to give us a charge in chart talk this morning. he's watching master card and net earnings. good morning! > good morning . let's talk about what happened here. traditionally does this stock moved heavily off of earnings? > well it is wind that is definitely being watched. that at a big beat last time. but if you look at the stock over the last year or however long it is basically been straight up. + 60% this year it's close to its 52 week high. so i think there will be a move the question is are people going to jump on are they going to take some profits year at this high level? i have to ask the question. with the stock trading around 700 dollars do you see it getting to 1000 this year or maybe in the next couple years? > you know i don't think so. barkley's raise their price target to 830 on it and i think that's pretty good. but you know that this stock is pretty fairly valued. they do not have a lot of new technology but, they are new payment processors. you know
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the moneymaker but not really a stock that i see exploding from here. but where would you see an entry point for somebody who does want to get in on the credit card play? > i like to see the stock come off a little bit. i think here there's more risk to the downside than the upside. i see support for are around 680 below that around 630. so i think it's room for it to come in the short term, on the downside. but anywhere below 700 you probably will be ok over the long term. do you short the stock? > i wouldn't shorted but i would definitely watch it. the key to this stock is to see what they say about the consumer and what they say about the market. thank you mat! >thank you that does it for now-- coming up tomorrow---the boys are back! it's a traders unplugged friday insights into investingin bitcoins. from all of us at first business.. happy halloween!
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